Credit Counseling in Manitoba, MB
People can find themselves in debt for a variety of reasons.
In Canada, the leading causes of bankruptcy are:
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- Reduced income/job loss;
- Medical issues;
- Emergency situations;
- Poor money management.
No matter what the cause, however, getting back on your feet and climbing out of debt can be overwhelming.
That’s especially true if financial mismanagement has been the biggest struggle for you.
Some people aren’t familiar with developing budgets and knowing how to effectively spend and save their money.
In fact, only about 49% of Canadians have a budget in place to manage their spending.
If you’re in debt in Manitoba, one of the things that can help is credit counseling.
The Risk of Being in Debt
Almost everyone can agree that being in debt isn’t a good thing.
But, many people don’t understand the actual risks that can come with debt, especially when it comes to credit card debt and financial mismanagement.
Before we talk about credit counseling and how it can help you to regain financial stability, let’s focus on a few reasons why debt can be so debilitating, and why you shouldn’t wait to get the assistance you need with your finances.
First, being in debt often encourages people to continue to spend money they don’t have.
You might think that not being able to pay your monthly bills would lead you to adjust your spending habits.
But, for many people, spending money now offers a sort of euphoric high without having to deal immediately with the consequences – at least until the bill comes.
Debt also causes you to pay more than whatever an item is worth.
If you buy a piece of furniture for $100 and don’t pay the bill when it comes, you will be charged interest on the item, and end up paying more than the initial $100.
Sometimes, that extra amount can be quite significant depending on interest rates and how quickly you’re able to make payments.
If you want to know how long it will take you to pay off a debt with a specific interest rate, you can try a card repayment calculator.
Finally, debt can keep you from reaching your financial goals.
Whether you eventually want to buy a house, a car, or send your children off to college, being in debt can make it nearly impossible to achieve those things, and can cause a lot of stress and embarrassment in the process.
Debt also impacts more than just your financial situation.
It can have a negative impact on your life, in general.
The stress from credit card debt can cause a strain on your relationships, your family, and even your physical, mental, and emotional health.
Taking the initiative to get out of debt and manage your finances can help with all of these dangerous risk factors.
What is Credit Counselling?
Yes, being in debt can be scary.
But, you don’t have to climb out of it alone.
In fact, showing an interest in eliminating your debt and working with a credit counselor in Manitoba is the first step toward financial stability.
The goal of a Manitoba credit counselor is to help you experience financial stability.
In order to do that, your debt needs to be eliminated and you need to understand how to properly and effectively manage your money.
If you’re looking for credit counselling services, our team can help you with any of the following:
- Consolidating your debts – This makes it easier to keep track of your debts in one place, so all you have to worry about is making one monthly payment that will be dispersed among all of them, rather than having to pay toward each one individually.
- Getting your finances back on track – We can help you to determine where you’re struggling the most and what you can do to stop excessive spending and mismanagement.
- Creating a budget – Once your finances are in order, we’ll assist you in creating a budget that works for your lifestyle while keeping your money safely stockpiled instead of wondering how you’re going to afford everything each month. While it’s up to you to stick to your budget, having it written down and well-organized can make it easier to do and it takes out the guess work.
When you work with a credit counselor, you can also end up saving thousands of dollars in interest charges.
The average amount of credit card debt for Canadians is over $72,000.
With even low-interest cards having rates of 9-12%, it doesn’t take long for interest to build up when you start to miss payments.
Getting your debt paid off faster and consolidating them can help you to avoid spending “extra” money on interest and focus more on the actual amount of your debt.
Debt Management in Manitoba
Credit counselling in Manitoba can serve several purposes, depending on your individual needs.
Once we help you to consolidate your debts and help you to come up with one low monthly payment, credit counseling becomes more of an informative, educational resource that you can use for the rest of your life.
You’ll learn more about interest rates and how paying off your credit cards in a timely manner can help you to avoid them altogether, and you’ll learn how to build a budget that works for you.
At Bankruptcy Canada, we don’t want to see anyone struggling with debt, but what’s even worse than that are those who have never had the opportunity to learn about financial management.
When you learn the right tips and tricks to budgeting and managing your money, staying out of debt becomes much easier.
If you or someone you know is struggling with credit card debt and you’re not sure how to climb out, feel free to contact us to speak with one of our licensed, professional credit counselors.
There is absolutely no shame in asking for the help you need to get out of debt as quickly as possible.
Remember, debt doesn’t have to last forever and it doesn’t necessarily mean you will have to file for bankruptcy.
We can help you to consolidate your debt and work with you on a plan to move forward.